California Startup Checklist: A Detailed Guide
Your Free Guide to Starting a Business the Right Way
By Simplecorp —
📌 Step 1: Choose Your Business Structure
Limited Liability Company (LLC)
Corporation (C-Corp or S-Corp)
Sole Proprietorship
Partnership
Need help deciding? Check out our guide: LLC vs Corporation: What’s Better for Your Business?
📝 Step 2: Pick a Business Name
Make sure that it’s truly unique and readily available for use in California.
Make sure to check the availability of your desired domain name before moving forward. This step is crucial to ensure you have the online presence that aligns perfectly with your business goals.
Reserve the name for your business (optional) to ensure that it's uniquely yours and can effectively represent your brand in the marketplace.
Need a little assistance checking for name availability? Give us a call anytime! We’d be more than happy to help you through the process.
📍Step 3: Choose a Registered Agent
They must be located in California and be available during regular business hours to ensure smooth communication and effective collaboration.
Simplecorp can proudly serve as your trusted Registered Agent, providing you with peace of mind and ensuring that all your important documents are handled with care and efficiency.
🗂️ Step 4: File Your Formation Documents
File your Articles of Organization for your Limited Liability Company (LLC) or the Articles of Incorporation for your Corporation (Corp) with ease and confidence!
Once you have submitted your documents, be sure to obtain confirmation and a stamped copy from the California Secretary of State. This important step will provide you with the necessary verification of your submission and ensure that your file is officially recognized.
Consider ordering a Corporate Kit, which is optional yet highly helpful for your business organization.
🆔 Step 5: Apply for an EIN from the IRS
To successfully open a business bank account and hire employees for your venture, there are several key documents and requirements you will need to gather and prepare.
*Pro Tip: We’ll get your EIN for you when you file with us!
💼 Step 6: Create an Operating Agreement or Bylaws
This document clearly defines the various roles, responsibilities, and organizational structure, ensuring that everyone involved understands their specific functions and contributions within the team.
💳 Step 7: Open a Business Bank Account
It's important to keep your finances separate for a variety of reasons. Maintaining a clear distinction between your personal and business finances helps you stay organized, simplifies tax preparation, and protects your personal assets in case of any business liabilities. By managing your finances separately, you can gain better insights into your business's financial health and make informed decisions for future growth.
Please remember to bring your Employer Identification Number (EIN), along with your formation documents and the ownership agreement when you open your account.
📄Step 8: File Statement of Information
Required within 90 days of officially registering your business to ensure compliance with all local, state and federal regulations.
It is important that this document must be updated on a regular basis, either annually or biennially, to ensure that all information remains accurate and current.
*With our SimpleShield™ Annual Protection Plan, Simplecorp can effortlessly handle this for you — just set it up and then forget about the tedious details! We’ve got you covered every step of the way.
💸Step 9: Register for State & Local Taxes
CA Sales Tax Permit (if you are planning to sell goods and products)
If you are planning on hiring employees, it's important to establish a CA Employer Payroll Tax Account. This account is essential for managing the payroll taxes that you will need to withhold from your employees’ earnings in California.
City/County Business License
A City or County Business License is a crucial legal document that allows you to operate your business within a specific local jurisdiction. It ensures that all businesses adhere to local regulations and ordinances, contributing to a well-organized and lawful environment for commerce. Obtaining this license is often one of the initial steps in your journey to successfully launch and manage your small business.
🔐Step 10: Stay Compliant Year-Round
Track and manage important due dates for your annual filings to ensure that you stay compliant and avoid any potential penalties or issues.
Keep detailed minutes and comprehensive business records to ensure effective management and compliance.
Simplecorp proudly offers comprehensive compliance reminders and registered agent services — ensuring that you never miss a single important deadline or requirement along your business journey.
🎯Bonus: Get Expert Help
Schedule a complimentary 15-minute startup consultation call with the friendly team at SimpleCorp.
Subscribe to our Start Smart Blog for Quick Tips, Helpful Tools, and Friendly Reminders to guide you on your entrepreneurial journey.
Need some helpful tax-saving tips specifically for LLCs and S-Corps? Don’t hesitate to give us a call! We're here to provide guidance and support tailored to your business needs.
Starting your business in California can feel overwhelming, but with Simplecorp, it doesn’t have to be. We specialize in helping aspiring entrepreneurs like you seamlessly incorporate and navigate the complexities of starting a business.
Our friendly team of experts is dedicated to providing you with a personalized service that saves you time, money, and hassle. We take care of all your filing needs so you can focus on what you do best—growing your business!
Don’t let the intricacies of incorporation hold you back. Choose Simplecorp and kickstart your California journey today—your entrepreneurial dream is just a step away!